EEC Board extended admissibility criterion of specific subsidy for jointly manufactured goods

On January 16, the Eurasian Economic Commission's Board extended for 5 years the condition requiring the participation of at least two countries of the Eurasian Economic Union in the manufacture of goods recognized as jointly manufactured to apply the criterion of admissibility of the subsidy. This decision will help strengthen cooperation chains and preserve opportunities for deepening industrial cooperation in the EAEU.

The Agreement on the procedure for voluntary approval by the Union States and the EEC of specific subsidies for industrial goods and proceedings related to the specific subsidies granted by the Member States was signed in 2017 to ensure conditions conducive to developing mutual trade and fair competition between the EAEU market participants.

As of the effective date of the Agreement, the EEC is empowered to approve specific subsidies, while the Member States have the right to apply to the Commission to protect domestic manufacturers that have received state support. For example, a State that has coordinated its actions with the EEC will be hedged against the risk of subsequent introduction of a compensatory measure against the recipient of such a subsidy by any of the Union States.

The Agreement defines 15 criteria for the admissibility of subsidies, one of which is granting a subsidy in respect of industrial goods recognized as jointly manufactured by the Member States. The Procedure for recognizing goods as jointly manufactured was approved on June 11, 2019 by Decision No. 93 of the Commission's Board, and some of its provisions are temporary in nature.